Brazil-origin beef offer levels into US drop at start of tariff-free period

US lean beef trimming prices were mixed on Sept. 1, the first day of the tariff-free import period, with 90CL prices holding steady for CIF shipments, while prices for FCA shipments softened slightly as bearish sentiment emerged for Brazil-origin supply.

Brazil-based sellers lowered their offer levels for the port-of-entry market on Sept. 1, and amid those declines, Platts, part of S&P Global Energy, assessed 90CL lean beef FCA East Coast -- for 16- to 60-day delivery -- at $3.03/pound, down 25 cents day on day, week on week and month on month.

Brazil-origin shipments were heard to be most competitive on the FCA basis, with offers discussed at $3.04/lb across loading periods including September, October, November and into early December, although no bids or trades were heard.

One lean beef trimmings trader attributed the declines largely to the removal of tariffs on beef imports, calling it a short-term opportunity. Ryan Urie, Head Global Crops and Proteins Analyst at S&P Global Energy CERA, said the 25-cent/lb drop was significant, but that margins for Brazil-based exporters were much stronger now with tariffs potentially removed.

Platts assessed 90CL beef CIF East Coast at $3.23/lb, unchanged day on day and week on week, but down 2 cents month on month, with Australia and New Zealand accounting for the largest share of observable CIF data. Despite limited US import demand due to the uncertainty, Australian cattle costs remained elevated, supporting prices for shipments from Australia.

Meanwhile, domestic and other-origin participants stayed on the sidelines amid uncertainty over the Brazil and Paraguay quota terms.

At the time of publication, the US Department of Agriculture nor the Office of the US Trade Representative had not announced clarifications on the benchmark and enforcement mechanism for the required 25% discount off the prevailing import price for lean beef trimmings.

On the supply side, US cow and bull slaughter -- the main source of lean beef trimmings -- totaled an estimated 3.441 million head through Aug. 29, down 4.7% year on year and 15.9% from the same period in 2024, according to USDA Daily Livestock and Poultry Slaughter reports and Weekly Actual Slaughter reports.

Cow and bull slaughter was estimated at 99,000 head for the week ended Aug. 29, up 4.2% on the week and up 4.1% from the prior six-week average. However, the volume was 3.1% below the corresponding week in 2025. Compared with the same week in 2024, slaughter was down 16.2%.